Nifty, BankNifty Outlook or analysis based on option chain (Jan 27 25)
Funds Flow (Rs crore) Last Closing
DII 2,402.31
FII/FPI -2,758.49
Put-Call Ratio
The Nifty Put-Call ratio (PCR), which indicates the mood of the market, dropped to 0.84 on January 24, from 0.95 level in the previous session.
The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.
India VIX
The India VIX, which gauges expected market volatility, remained in the higher zone, rising 0.3 percent to the 16.75 level. This makes the bulls more cautious as the market approaches the Union Budget event.
Nifty Call Options Data
According to the monthly options data, the maximum Call open interest was seen at the 24,000 strike (with 1.21 crore contracts). This level can act as a key resistance for the Nifty in the short term. It was followed by the 23,500 strike (74.09 lakh contracts) and the 23,800 strike (57.48 lakh contracts).
Maximum Call writing was observed at the 24,000 strike, which saw an addition of 31.2 lakh contracts, followed by the 23,500 and 24,200 strikes, which added 21.38 lakh and 19.37 lakh contracts, respectively. The maximum Call unwinding was seen at the 22,500 strike which shed 1.05 lakh contracts, followed by the 23,700 and 23,600 strikes, which shed 81,150 and 67,175 contracts, respectively.
Nifty Put Options Data
On the Put side, the 22,000 strike holds the maximum Put open interest (with 93.17 lakh contracts), which can act as a key support level for the Nifty. It was followed by the 23,000 strike (62.43 lakh contracts) and the 22,500 strike (52.59 lakh contracts).
The maximum Put writing was placed at the 22,000 strike, which saw an addition of 16.51 lakh contracts, followed by the 22,100 and 22,800 strikes, which added 11.45 lakh and 10.27 lakh contracts, respectively. The maximum Put unwinding was seen at the 23,200 strike, which shed 7.13 lakh contracts, followed by the 23,000 and 23,300 strikes, which shed 5.53 lakh and 3.57 lakh contracts, respectively.
Key Levels For The Nifty 50
Resistance:23,277, 23,347, and 23,460
Support:23,050, 22,979, and 22,866
Bank Nifty Call Options Data
According to the monthly options data, the maximum Call open interest was seen at the 50,000 strike, with 25.07 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 49,000 strike (19.61 lakh contracts) and the 49,500 strike (17.88 lakh contracts).
Maximum Call writing was visible at the 49,200 strike (with the addition of 9.86 lakh contracts), followed by the 48,500 strike (3.74 lakh contracts) and the 48,400 strike (2.85 lakh contracts). The maximum Call unwinding was seen at the 49,500 strike, which shed 8 lakh contracts, followed by the 50,400 and 50,200 strikes, which shed 42,060 and 39,960 contracts, respectively.
Bank Nifty Put Options Data
On the Put side, the 47,500 strike holds the maximum Put open interest (with 18.33 lakh contracts), which can act as a key support level for the index. This was followed by the 47,000 strike (14.59 lakh contracts) and the 48,000 strike (12.87 lakh contracts).
The maximum Put writing was observed at the 48,300 strike (which added 2.13 lakh contracts), followed by the 47,800 strike (2.11 lakh contracts) and the 47,500 strike (78,555 contracts). The maximum Put unwinding was seen at the 48,700 strike, which shed 2.43 lakh contracts, followed by the 48,600 and 48,000 strikes which shed 1.89 lakh and 1.45 lakh contracts, respectively.
Key Levels For The Bank Nifty
Resistance:48,727, 48,882, and 49,132
Support:48,226, 48,071, and 47,821
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